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The project provides an overview of the functions performed and finances raised by the urban local bodies in the state of Jharkhand. On the whole it is found that most of the functions assigned to them are not being performed. The levels of tax and non tax revenues are abysmally low as a result of which there has been an over-dependence on the upper tiers of the governments for grants. Unstable political situation in the state has led to improper utilisation and leakage of funds even at the local level.